"Unknown Error has Occurred" happens for most people as a result of dropped packets. ESO does a horrible job at smoothing out less than ideal network connections, and instead of making up for lost packets, simply drops the player with this error.
Many people have gotten around this error by hard-wiring their internet. Others by updating their network drivers and router firmware. Personally, I had to simply adjust some router settings and this error disappeared.
Overhaul every point that internet traffic flows from your computer to the WWW, and the majority of people will see this error disappear.